Evolution 4.0 Metals Market Analysis | November 2015
As per Evolution CEO's 11|06|2015 appearance on Rogue Money would suggest, something unusual is happening in the precious investment metals markets (specifically Gold). We have seen record lows for the spot pricing of gold, in addition to what we can only describe is outrageously inflated US domestic index figures. Additionally we have seen "dollar strengthening" predicated upon what the development staff of Evolution Consulting has come to call a "bag of steam". That is to say that the only reason "dollar strength" exists at this point is because of artificial weakening of the metals markets (specifically Gold).
Based upon Evolution 4.0 analysis, what is being seen is the first half of a two part "wealth transfer" process. Many economists have mentioned the notion of a "fools rally" whereupon prices of metals would be inflated to encourage a sell off of hard assets. The net effect is to create supply for purchase by those who are longer term investors. However, there is another side to that wealth transference equation. The notion of lowering the price (spot) of metals to the point where metals may not seem to be such a wise investment. Most investors and traders are conditioned to "cut their losses" at some point and to mitigate risk / prevent further losses. The end result is the same: increase available supply of metals. Specifically, increase the transfer of hard assets (in this instance Gold).
The key concept to understand in the above narrative is to stop comparing Gold (in any quantity) to dollars or any other fiat currency for that matter. As Evolution CEO F. Nathaniel Sereny so eloquently stated during his radio appearance on V the Guerrilla Economists show: "At some point the metals markets are going to have to move from a pricing structure to a valuation structure". In other words, a very simple question: "What is gold worth [not compared to fiat currencies] to basic necessity goods and services. For instance, what is gold or silver worth compared to a loaf of bread, a gallon of gasoline, etc. In essence, what is the effective "real" purchasing power of metals?
Based upon Evolution 4.0 analysis, the real purchasing power of metals post GER (Global Economic Reset) is going to be many multiples of what it is now (even compared to fiat currencies). We will be the first to say that the data set that we have been working with is enormous (even by Evolution standards). Our analysis has been based upon estimated supply vs demand, global GNP/GDP, money supply figures, amongst many other variables.
Therefore, from a purely economic perspective it would benefit those who are aware of the concept we are describing here, to retain ownership of metals until after the collapse of some (or possibly all) fiat currencies. Please note that when we use the term "fiat" currencies we are referring to "non asset backed" currencies, which at this point is effectively all of them. In terms of which currencies are likely to be "metals backed" in the future, Evolution 4.0 indicates that the Chinese Yuan, Russian Rouble, and Indian Rupee to be most probable. This is due in part and parcel to the fact that those three nations have some of the largest gold stores in the world. (By tones and also in private individual and/ or corporate ownership).
By retaining precious metals until after a fiat currency collapse, those holding the metals would be guaranteed tremendous purchasing power. (Many times greater than the currencies in which would be not only obsolete, but also no longer available to compare to). Therefore, the investment advice that we do offer individual, and institutional level investors is the same: Do not sell metals into weakness or into strength. Rather hold metals until the metals market moves from a "pricing" structure to a "valuation" structure. Doing so guarantees financial viability not only during but especially after the GER or GER-like economic event.
Please note that the "transference of wealth" process give-away is the printing of fiat currencies and the shortage of gold supply. Effectively nations and nation states do not care what they purchase metals for, only that they can purchase metals. In doing so, the printing of currency is often used as a means to acquire available metal supplies. The side effect of the printing is the inflated domestic capital market index numbers, increased systemic liquidity, as well as increased consumer spending figures. As the Evolution Consulting development department calls it the "run for the brass ring". (A reference to the cony island merry go-round circa the 1920's where children that got the brass ring would get to ride the merry go round again for free without waiting in line). In other words, a "get what can be gotten while it can be gotten" approach to economics that all but acknowledges an impending "reset" or "implosion".
Please note that the Grant Street Notes metals investing guide will be available for purchase on 12/1/2015 with the 2016 metals market forecast in detail. We encourage those who are either currently investing in, or who plan on investing in metals to not only purchase the GSN metals investing guide, but also to subscribe to WireHaus whereupon we share even more in depth metals market and investing analysis. The entire Evolution Team would like to say a special thanks to V the Guerrilla Economist for having Evolution Consulting CEO F. Nathaniel Sereny on as a frequent guest to share the insights and findings of the Evolution 4.0 system.
